And, over the same period, a booming housing market encouraged many first-time buyers to overstretch themselves to get on the property ladder.

But economists are predicting the Bank of England's monetary policy committee will cut interest rates by 0.25% to 4.5% next week. A Reuters poll of 47 economists found that 43 thought the Bank would cut interest rates this week.

The figures do not reveal the actual repossessions because a person can still settle their debts and save their home after an order has been made.

But figures from the Council of Mortgage Lenders revealed the number of repossessed houses increased in the first six months of 2005 - the first such rise for seven years.

Across Britain, banks and building societies took possession of 4,640 properties, compared with 3,070 in the previous six months, a rise of 51%.